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Monday, March 20, 2023

The Booming Uganda Car Rental Business

Comparable to other flourishing business ventures, the car rental business has scooped a locus on the list among the easily profiting businesses. As usual many business owners prefer getting into a witnessed operating business.

However, like any other smoothly running venture, there are dynamics of opportunities accompanied with challenges attached to this hot cake venture. A number of considerations such as abroad market space are key facilitations of the sector.

The car rental broadness extends into safari rentals, city drives, business, and cargo, weeding and construction rentals.

Safari car rental is a sophisticated and delicacy niche of most Uganda car rentals. In the tourism world, many of the travelers are preferring to hire a car either with a driver or do a self-drive.

Then, how does the car rental venture operates? Currently, in Uganda there over 100 websites of companies venturing into car rental business. Though many, but that everyone has invested in the venture, no! Several of the companies are perfectly handling the work of a middle man.

Operation of the Car Rental Business in Uganda

Several reputable companies have availed and offered various models of car for rental. However, it’s should be noted that highest number of rental companies are rental companies in Uganda are third part in the business.

Through different platform, companies have released a market of potential buyers. Mainly through websites, recommendations, locations and agents, this is how car rental companies get clients.

For the sake of safari rentals, though only 4×4 cars used, but not every car can do a safari. The 4×4 safari car rentals are customized for safaris in particular.

Safari car rentals are tour vehicles, when bought from the car bond, again has to be replaced with perfect spare which can enable the car to drive for longer distances.

Securing a client is a battle especially with websites reservations. The reservation team must be very convincing just because most of the clients inquiring do window shopping.

Among the clients/travelers/tourists some hire a car for self-drive, and other hire a car with driver. It’s very risky to let a car to someone who is not familiar with the terrain and roads. And this is the situation under which these companies operates in.

Car Rental Business operates on honesty and trust, while booking, hirers/clients send in their some money to unfamiliar. Then, they remain to expect for a service as agreed upon reservation.

A car rental ready for use, should always be kept in a pure mechanical condition. However, mechanical technicality remains one of the major challenges of car rental operation.

Advantages of Car Rental Business

Hurried profits; after investing in buying and customizing vehicles for hire. Realizing profits is a walkover within a limited period of operation. The vehicle makes its money, whenever, the vehicle is back from the use, must be thoroughly mechanically checked and fixed of any breakdown.

Easy to manage; after reserving the vehicle and deliver it to the client, then have to set back and wait either for road assistance or collecting back the vehicle. Car rental business doesn’t deal with securing accommodation, organizing everything on the trip. No, it’s only a business of letting you a car and relax.

Broader market base; every day the market base of car rental is increasing getting better. This due to repeatedly market by several rental companies, tour companies and various marketing agencies. The market base also depends on the increasing number of travelers who opt to do everything on their trip by themselves. Several travel they rather car a car with a driver than taking a guided safari with any tour companies.

Booming tourism sector; the continual marketing strategies buy government agencies like Uganda Tourism Board and many private sector companies. This has increased the market base of travelers to Uganda. Among the so many tourist, some prefer to hire a car and do a self-drive trip.

Risks of Car Rental Business

This fertile business is as well a delicate business to handle. There are several challenges associated with the car rental business making it one of the risky ventures to operate. Some companies and proprietors have suffered beyond mechanical technicality, and rescue issues.

Theft risks; – several rental vehicles have been stolen by the impersonator. These come in the name of hiring a car for a trip and end up steeling. This incident has happened on two rental operators; Mugisha Kennedy of Self Drive 4×4 Uganda; in 2019 he hired 2 vehicle a Toyota Premio and Land Cruiser V8 that ended him in prison and courts of law. Though the Premio was restores, the V8 wasn’t.

Also Mbazira Bashir the proprietor of Omega Car Rental, in the same way, he hired land cruiser TX which was stolen by the hirer.

And many other incidences, this comes because the business involves renting a car for self-drive. Though vehicle tracking systems are deployed, also thieves find new ways of doing their ways.

Unestablished incidents; – People hiring cars are not familiar with roads and terrains. This makes them eligible to several road faults. Bad driving leaves the vehicles in a very poor mechanical condition and may require even more than what was used to hire. Accidents are one of unestablished incidences by hirers.

Client’s temperaments; – several rental operators have faced a situation of reserving a vehicle and a client fails to take it claiming it’s not a good car. Should be noted that in Uganda, older models of 1998 are used for safaris.

However, there are newer models which tends to be more expensive and some client can afford hiring them. But rental operators have mastered the sector and always makes sure that their rental cars are kept in a perfect mechanical condition.

Some clients have an ego to reject what’s reserved for them. This in most case depends on the character of clients, but in the real sense all presented vehicles are able for any destination in Uganda.

Ghost rental companies

It’s a very tight business to operate, however, well established companies now start to battle with hand bag companies. This has created unnecessary competition where some companies reach an extent of offering a car rental at outcompeting rates.

Seasonal business; – The business being a tourist aspect, operates in seasons. During high season no vehicle in the car parking, any vehicle which comes back from the trip is made ready to return. This makes the business very interesting in the peak travel months.

However, for low travel months, it’s a dozing moment, all vehicles in the car parks with limited inquiries. Being a season business, it highly affects the operation of companies.

Car rental complements

Car rental business has got supplementing services offered together with the rental. Mainly 4×4 car rental with rooftop tent is a great deal for travelers opting for a rooftop camping. This means hiring a car with rooftop tent and all camping equipment.

Hiring a car with a driver, this is also a common trend, many travelers have wished to hire only a car and its driver and then do the rest of the activities on the rental.

Car rental with a pop-up, these are safari customized vehicles perfect for game watching. Also some travelers prefer hiring a car with a pop-up roof to enable a perfect watch of wildlife especially in savannahs.

Difference between car rental business and safari tours

Safari car rental business deals with hearing tourist vehicles to tourist. But for this case tourist either rent a car and do a self-drive or rent a car with a driver. Then, planning for the all trip remains for the clients and nothing else is catered for by the rental operators.

And a fully guided safari tours is an all-inclusive trip. When reserving almost all things concerning the trip are catered for by the tour operator. Here tourists/clients have to make a full payments of the all trip and remain with seating enjoy everything concerning the trip.

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